4.4 Article

Supply chain integration and its impact on supply chain agility and organizational flexibility in manufacturing firms

Journal

INTERNATIONAL JOURNAL OF EMERGING MARKETS
Volume 16, Issue 8, Pages 1721-1744

Publisher

EMERALD GROUP PUBLISHING LTD
DOI: 10.1108/IJOEM-04-2020-0418

Keywords

Supply chain integration; Supply chain agility; Organizational flexibility; Manufacturing firms

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This study examines the impact of environmental uncertainty and organizational ambidexterity on supply chain integration, agility, and flexibility in manufacturing firms. The results show strong relationships between environmental uncertainty, organizational ambidexterity, and supply chain integration, leading to improved supply chain agility and organizational flexibility.
Purpose - This study investigates the impact of environmental uncertainty and organizational ambidexterity on supply chain integration and its relationship between supply chain agility and organizational flexibility in the manufacturing firms. Design/methodology/approach - The data were collected from 526 managers in services and manufacturing industry in Kuala Lumpur. The partial least square (SmartPLS 3.0) tool was applied through the use of the structural equation modeling (SEM) technique. Findings - The results revealed that a strong relationship exist between environmental uncertainty and supply chain integrations including customer, supplier and internal integration. Organizational ambidexterity has a significant relationship with supply chain integration. Supply chain integrations were shown to have a positive impact on the firm's supply chain agility and organizational flexibility. Originality/value - The findings may assist to establish a set of key drivers for enhancing supply chain agility and organizational flexibility as a supply chain management initiative in the manufacturing and service industry.

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